Credit Score 101 For Millennials

These days, it is getting harder and harder for millennials to land a job, get an apartment, and pay off student loans. It’s also getting harder to get approved for better credit. All these problems stem from the fact that millennials don’t seem bothered about the rapidly declining average credit scores under their demographic.

With that in mind, HTP Enterprises, a seasoned credit repair company in Wyoming, shared with us the basics of the credit industry and everything else that every millennial need to know.

As of writing, the reported average credit score for people aged 18-24 here in the United States is only at 630. Now no one can say that it is a bad credit score. According to HTP Enterprises, scores ranging from 620-679 are still on the “okay” side of the spectrum. However, when compared to the average credit score of the preceding generations, Generation X and Baby Boomers (55 years old and up) of 697, millennials’ average score looks pretty feeble.

This disparity may not seem a lot to us consumers, but to businesses and other opportunities, every number that goes up or down holds a certain significance.

So, the first thing that you need to know is that you have to monitor your credit score. 1, to know where your credit is at, and 2, to know how you can either maintain or repair it. You can check your credit report for free through Equifax®, Experian®, and TransUnion® once every year so make sure that you do.

There are special cases wherein you can get additional free credit report checks. These cases could be when you’ve been a victim of fraudulent credit activities, identity theft, and/or if you have been rejected for credit.

The next thing you need to know is that abusing your credit limit is not just detrimental to your credit score, it is also harmful to your financial health. Maximizing your credit limit means higher monthly payments. And if you’re not a pro in budgeting, a surge in your monthly expenses may push you into debt.

Depending on the terms of your credit card, any unpaid outstanding balance gains an interest each month. So, it is also very important to know the details of your credit card deal and try your best to pay your monthly dues in full every month regardless of your terms. It is always better to practice good financial habits, right?

One more thing you absolutely need to know is that you should and is supposed to use your credit. Without using or getting even one credit card inhibits you from building a credit. So, if you have one, use it and use it wisely. Don’t be afraid. As long as you keep in mind all of the simple tips that we have shared above, your credit should be fine.

If you want to know more about the credit industry or if you need some help in rebuilding your credit, go ahead and check out HTP Enterprises Financial!

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Melissa Thompson

Melissa is a mother of 2, lives in Utah, and writes for a multitude of sites. She is currently the EIC of and writes about health, wellness, and business topics.